Google sues Hollywood to train its AIs without permission

Google is targeting the protected catalogs of studios to train its AI models and is offering substantial amounts, up to $40 million per character. No major studio has signed on at this stage, amid controversies surrounding the use of AI in productions and similar projects already contracted elsewhere.

Controversies and Caution Hinder Signatures with the Majors

Fans expressed their disappointment upon discovering AI-generated images in the official art book of Spider-Man: Brand New Day, a film that grossed $2 billion at the box office. This reaction fuels the studios' caution, as they view the explicit announcement of "AI-generated" projects as a potential risk to their image. To date, none of the major historical studios have publicly presented a significant project clearly identified as produced by Google’s AI tools, and Google has not secured agreements with Disney, Warner Bros. Discovery, or Universal.

Training Licenses: High Amounts and Per-Character Scope

According to information reported by the Los Angeles Times from anonymous sources, Google has submitted licensing offers to studios regarding its artificial intelligence solutions. The same newspaper indicates that these proposals could represent several hundred million dollars, with individual rates nearing $40 million for creating content around a protected character from a studio such as Disney/Pixar. The total could increase depending on the number of characters included and exceed several billion dollars based on the extent of the rights granted.

What Google is Offering to Convince Hollywood

Google has recently approached several major studios to obtain permission to train its AI models on protected libraries, for compensation. The proposals include the possibility for studios to see their characters exploited in AI-generated content distributed on platforms like YouTube, with a share of advertising revenue potentially returned to the rights holders. The licenses would explicitly target works and characters subject to copyright, used both as training data and as subjects of generated content.

Peripheral Signals Already Established in the Ecosystem

Meanwhile, DeepMind, a subsidiary of Google, concluded a $75 million investment agreement with A24 earlier this summer. In 2024, Lionsgate signed a licensing agreement with Runway; no concrete results have emerged yet, but both companies announce they are working on a plan to release AI-generated short films. Before the collapse of their partnership, Disney and OpenAI had considered showcasing user-generated content on Disney platforms.

The Competitive Advantage Sought and the Question of Acceptability

Google views these licenses as a means to strengthen its position in AI and highlights, for example, Gemini's ability to produce images of Disney characters such as Darth Vader or Snow White if agreements were reached. The industry reports a climate of distrust towards AI, including among younger audiences, despite the success of tools like ChatGPT. AI is perceived as a way to accelerate production timelines and reduce certain costs, which motivates studios' interest. A licensing agreement with Google is presented as a potential turning point, a first demonstrative project that could encourage other studios to follow suit, while Google hopes to gain a competitive advantage from it.